The PPVE, a French legislative innovation introduced byLaw no. 2023-1107 of November 29, 2023, replaces the former exceptional purchasing power bonus. This new measure is a response to the growing need of employees to participate more actively in the life and success of their company. It stands out for its flexibility and its approach geared to enhancing the company's value, thus offering a new form of incentive compensation.
PPVE mechanism
The PPVE is a voluntary collective incentive scheme designed to reward employees for their contribution to increasing the value of their company. The mechanism is simple: if the value of the company increases over a defined three-year period, employees are entitled to a bonus. This bonus is calculated according to the increase in value and is exempt from social security contributions. This mechanismnot only encourages company performance, but also aims to strengthen the bond between employees and their employer.
Benefits for companies and employees
For companies, the EVPP represents a strategic tool for improving employee commitment and loyalty. By associating them financially with the company's success, employees feel more invested and motivated to contribute to its growth. For employees, the PPVE represents an additional source of income, directly linked to the company's results, reinforcing their sense of belonging and recognition.
Setting up the Company Value Sharing Plan and XVAL's role
To set up the PPVE, companies need to conclude a collective agreement, requiring a precise assessment of the company's value. This is where XVAL comes in, offering customized valuation services. Thanks to its expertise, XVAL can help work out valuation formulas tailored to each company, taking into account various financial criteria. This service is all the more crucial for unlisted companies, for whom valuation is not based on market data but requires a more personalized approach.
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In conclusion on PPVE
The PPVE is a major step forward for French companies, offering a new way of recognizing and rewarding employee contributions. With the support of XVAL, companies can successfully navigate the complexities of setting up this scheme, guaranteeing accurate and fair valuation, essential to the success of the PPVE.
